Jan 30 2019
Millrock Resources Inc. announces the results received from a drilling program finished at the La Navidad gold project in Sonora State, Mexico. The northwestern portion of the project was the focus of the program.
At the El Tigre prospect, four holes were drilled, where gold had been detected in the neighborhood of historic mine workings by soil sampling. The examined drill holes induced polarization geophysical anomalies and northwest-trending high-angle structures that seem to control mineralization seen at the surface. Four additional holes tested at the El Chupadero prospect where alteration (decalcification and jasperoid replacement of limestone) indicated the likelihood of an intrusion-related gold deposit. Altogether, eight holes totaling 1844 m were drilled in the program. The exploration activity was sponsored under an option to joint venture agreement by Centerra Gold Inc.
The drilling results were largely unsatisfactory. Just a few weakly anomalous gold values were gotten. The alteration and mineralization seen at the surface seem to weaken in the subsurface. It is apparent that further exploration activities on these prospects are not necessary.
Millrock has received a notice from Centerra that it is axing the option to joint venture agreements on La Navidad as well as El Picacho gold projects.
Millrock thanks Centerra for the investment they made in advancing these projects. While Centerra has elected to leave, we strongly believe the projects have excellent technical merit. We think they will be attractive to mid-tier or smaller mining companies. Our intention is to seek out new funding partners, but at the same time we will have to balance the cost to hold to La Navidad and El Picacho concessions in the face of Millrock’s currently limited cash position.
Gregory Beischer, President and CEO, Millrock
Corporate Developments: PolarX Shares and Cash Position
Lately, Millrock sold 10 million PolarX shares for A$475,000. Although Millrock continues to be a great believer in the Alaska Range Project, Millrock’s comparatively weak cash situation made it logical to sell the shares. Millrock continues to be entitled to an advanced minimum royalty, a production royalty, and certain milestone payments.
Equity markets continue to be very tight. Millrock has to be extremely careful with its remaining funds. Management is cutting costs in all ways possible while the technical team works diligently to secure new funding partners. It is management’s view that securing new partnerships will be the best way for the Company to reduce overhead costs. The Company has an excellent portfolio of gold and copper projects but there is a cost to hold un-partnered projects until new partners are secured. Given the continued weakness of Millrock’s cash position (approximately C$790,000, as of today’s date, net of near-term accounts receivable and payable), the Company is considering all possible alternatives to move forward, including divestiture of Mexico projects and other assets.
Gregory Beischer, President and CEO, Millrock
Quality Control–Quality Assurance
Millrock complies with the strict Quality Assurance–Quality Control (“QA/QC”) standards. For the La Navidad drill program, drill core samples were always placed in a secure site. The assay process of the rock samples was done at the Bureau Veritas laboratory in Hermosillo, Mexico. The sample preparation technique code employed for the current rock sampling program was PRP70-250. Analysis techniques used include AQ-200 (Aqua Regia–ICP/MS) and FA430 (30 gr/Fire Assay/ICP). For every 20 rock samples, a blank sample known to hold less than 3 parts per billion gold or a standard sample (Certified Reference Materials) of known gold concentration, or a duplicate sample, was also examined. The qualified person is of the view that the results received from the lab for the samples and collected in this drill program are consistent.
Qualified Person
The scientific and technical information revealed within this article has been prepared, reviewed, and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr Beischer is a qualified person as defined in NI 43-101.